Is Google, Facebook, Apple And Amazon Truly A Monopoly?
Or Did Consumers Choice Dominated…?
Yesterday, Amazon CEO Jeff Bezos, Facebook CEO Mark Zuckerberg, Google CEO Sundar Pichai and Apple CEO Tim Cook testified with the U.S Congress on breaking Anti-Trust laws, Mergers and Acquisitions (M & A), and claims of monopolizing the tech industry in ways that harm consumers. All these current large tech firms started as small start up companies, that continued to transform their companies, copy pre-existing companies, and became market prepared to succeed in the future of technology. Although the question to be answered is it really harming consumers or business owners whom can’t compete with the companies low prices and consumer audience?
It’s been known since 2018, that Amazon uses their analytics to determine products consumers love, and than resell to the same demographic for a lower price as Amazon Basic line. Supermarket companies have created their own basic lines that are affordable versions to the same demographic for years. So is the problem is that Amazon Basics steal customers, or that the original product brand wasn’t important?
In 2013, Facebook company that had already acquired Instagram in 2012, tried to acquire Snapchat. Snapchat was the first platform to create AI filters that allowed consumers to not only take pictures that would disappear after opening, but provide an interactive way for brands to connect with consumers. After Snapchat declined the Facebook offer, many feel that Instagram, Facebook company creating a camera on the application, and filter option on the app is what destroyed the value of Snapchat.
Although the truth is, in February 2018, Snapchat created a new app update that everyone hated. It became a trend on Instagram of how much consumers hated the application new update. Instead of the company, taking in the feedback of its consumers, and creating a new update, or undoing the update until they created a better one. They kept the update. This provided the opportunity for both Facebook and Instagram platforms to take advantage of the uprising of complaints to make a better filter photo option for the consumer.
According to Smart Insights, Instagram increased in 800 Million Users around this time period. Instagram was able to create a service to brands and people, when another social media company was loosing momentum. On an outside perspective it could make it seem like Facebook copying of snapchat AI filters caused Snapchat’s death. Although, the reality is Snapchat caused its own death.
The reason why Snapchat died in its momentum was because the brand loyalty it built wasn’t strong enough. Snapchat was so interested in building it’s multi medium platform, that it lost sight in why consumers loved snapchat in the first place.
When talking about brand loyalty, we have to mention the king of the cult, Apple. Apple has created an empire of products that fans are loyal to. When you are a member of Apple, you are agreeing to the iOs software on all products you own. You are agreeing to pay overvalue for a product. To only provide your money to Apple for all things associated with your product. Due to the mass popularity of Apple products, it has provided the Apple the opportunity to become a secondary monopoly in the technology space.
Consumers pay for an Apple controlled atmosphere, where Apple gets to play the rules. If programmers or companies want to create apps to market to mobile consumers. Apple, is an important store to be apart of. Causing companies have to abide by the rules of Apple. Consumers repeatedly chose Apple to be monopoly by mass purchasing their products. Apple intent wasn’t to become a monopoly, consumers chose them to be the monopoly.
The same way, consumers chose Instagram to win over Snapchat. The same way consumers chose Amazon Basics to win over another brand. Consumers time and time again chose the companies they want to have the power.
If companies chose not to copy services from small business owners, would they ever really be used? When looking at snapchat, you could say yes, but we don’t know if Instagram never took up filters, if filters would still be what consumers would want from their social media platforms.
The reason companies like Facebook, Apple, Amazon and Google are successful with consumers, is because it provides them an opportunity to gain from the companies success. Not allowing Facebook and Instagram to continue, would mean sacrificing that business you grew on their, sacrifice possible leads to sales, affiliate marketing, or the opportunity to do your passion full time. Not allowing Apple and Google to continue, would mean sacrificing a free marketplace opportunity to create applications that anyone could use. Not allowing Amazon to continue, would be risking the opportunity to getting your business the competitive services consumers look for.
These companies opening up their services to everyday people, promotes them sharing and advertising the company for free. It creates a forever environment that consumers benefit from keeping monopolized.
It leads to no one wanting to be the person, the thing to break it because the future circumstances of those actions could have a negative impact on the whole global economy.
Companies like Target and Wal-Mart, created third party marketplaces with Shopify as a way to compete with Amazon. Selling their consumers as an opportunity, for businesses of all sizes to reach new audiences, and take advantage of the services and brand a large company curated for decades.
The future of companies in the tech industry, is providing free services to consumers to increase population demographics, building a brand that other brands can branch from, and profiting off of businesses that can also benefit from the service and market size. Whichever company can provide the best consumer experience in the end of the day, is the next future monopoly.
